Gold Prices have 'benefitted from sovereign debt problems'

Gold Prices have benefitted from the recent sovereign debt problems experienced in countries such as Greece.

That is according to Credit Agricole analyst Robin Bhar, who believes that precious metal prices have responded well to the financial ebbs and flows in Europe, according to Reuters.

He told the news provider: "Gold has benefited from the sovereign debt problems, which reached a head [recently].

"We have had some calmer markets since the first wave of panic hit the markets, then subsided. But it is still supported by those fears."

Meanwhile, Ved Prakash Arya, managing director and chief executive of Milestone Capital, has said that investment demand for the yellow metal is likely to see prices rise further.

Arya said: "Gold is set to rise backed by high investment demand due to multiple factors, such as fear of impending inflation … indicating pressure to diversify due to current currency exposures."

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